Examining the Effect of Board Characteristics on Agency Costs and Selected Performance Measures in Banks (Report‪)‬

ABSTRACT To date the empirical research examining the association between measures of corporate governance and accounting performance measures has yielded inconsistent results. We believe that the mixed results are due in part to the inclusion of firm across various industries. This study continues the stream of research studying agency theory and the relationships between board of director characteristics and firm performance. We address these issues by developing a set of models in a single, regulated industry. Focusing on the banking industry over a five-year period allows us concentrate on the measures rather than potential variations across industries. Our findings contradict the hypotheses developed under the agency theory approach and lead us to believe the relationships should be studies under a different lens.